Elton and Don are partners who share profits and losses in the ratio of 7:3, respectively. On November 5, 2011, their respective capital accounts were as follows:
|
Elton |
$ 70,000 |
|
Don |
60,000 |
|
$130,000 |
On that date they agreed to admit Kravitz as a partner with a one third interest in the capital and profits and losses upon his investment of $50,000. The new partnership will begin with a total capital of $180,000. Immediately after Kravitz’s admission, what are the capital balances of Elton, Don, and Kravitz, respectively?
a $60,000, $60,000, $60,000
b $63,000, $57,000, $60,000
c $63,333, $56,667, $60,000
d $70,000, $60,000, $50,000